30 years to save for a mortgage deposit – there is an ‘affordable’ alternative

Single savers face waiting 30 years to save for a deposit large enough to buy a residential property in London or 14 years nationally, according to a report commissioned by the homeless charity Shelter which was published yesterday (Wednesday).

Many would-be first-time buyers are being priced out of buying property due to rising prices, fuelled by low interest rates and state-subsidised lending.

The average price of a home in London, for instance, reached an average £414,000 in April, up 46% compared to £284,000 in March 2009, the latest data published by the Office for National Statistics shows.

The publication of Shelter's report also coincided with a warning from the UK's largest lettings agency, LSL Property Service, which said that rents would increase by a further 9% to reach an average £800 a month by 2015.

Fortunately, there are affordable housing options for many buyers across the country.

Despite the general shortage of new homes, housebuilders nationwide are developing a wide selection of affordable homes to meet all tastes and budgets.

Apartments at Gallagher House in Hackney, E9, for instance, are available to buy through Sanctuary Housing, from £88,000, based on a 40% share with subsidised rent on the remaining share.

In Birmingham, Bromford Homes has four new homes available at Hardintone Court, Erdington, set at the end of a cul de sac off Goosemoor Lane and offering a choice of two- or three-bedroom accommodation. Prices start from £30,625.